This report supplements our research update "Guatemala Outlook Revised To Negative On Higher Fiscal Pressures; 'BB/B' Foreign Currency Ratings Affirmed," published on Oct. 27. 2016. To provide the most current information, we may cite more recent data than that stated in the previous publication. These differences have been determined not to be sufficiently significant to affect the rating and our main conclusions. Declining public-sector investments and increased poverty reflect the government's inability to promote sustainable growth over the long term. Also, a reduction of the sovereign's already low general government revenues to GDP would translate to a higher interest payment burden, despite S&P Global Ratings' forecast for low fiscal deficits in the next two years. High political fragmentation would continue
